Hovnanian Enterprises (NYSE:HOV) Shares Down 5.7% – Should You Sell?

Hovnanian Enterprises Inc (NYSE:HOV) shares fell 5.7% on Friday . The stock traded as low as $109.61 and last traded at $108.8650. 85,911 shares traded hands during trading, a decline of 21% from the average session volume of 109,140 shares. The stock had previously closed at $115.46.

Analyst Ratings Changes

Several brokerages have weighed in on HOV. Wall Street Zen raised Hovnanian Enterprises from a “sell” rating to a “hold” rating in a research report on Saturday, February 28th. Citizens Jmp began coverage on Hovnanian Enterprises in a research report on Thursday, April 9th. They set a “market underperform” rating and a $74.00 price target on the stock. Finally, Weiss Ratings downgraded Hovnanian Enterprises from a “hold (c)” rating to a “hold (c-)” rating in a research report on Friday, May 8th. Three investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Reduce” and an average price target of $97.00.

Hovnanian Enterprises Stock Performance

The firm’s 50 day moving average price is $109.13 and its 200-day moving average price is $113.76. The company has a debt-to-equity ratio of 0.04, a quick ratio of 0.43 and a current ratio of 1.50. The firm has a market capitalization of $627.66 million, a PE ratio of 29.03 and a beta of 1.87.

Hovnanian Enterprises (NYSE:HOV) last posted its earnings results on Thursday, May 21st. The construction company reported ($0.46) earnings per share (EPS) for the quarter, topping the consensus estimate of ($2.04) by $1.58. Hovnanian Enterprises had a net margin of 1.25% and a return on equity of 11.20%. The business had revenue of $667.65 million for the quarter, compared to analyst estimates of $626.40 million.

Institutional Investors Weigh In On Hovnanian Enterprises

Several hedge funds have recently modified their holdings of HOV. Teacher Retirement System of Texas boosted its stake in shares of Hovnanian Enterprises by 292.2% during the 3rd quarter. Teacher Retirement System of Texas now owns 59,080 shares of the construction company’s stock worth $7,591,000 after acquiring an additional 44,017 shares in the last quarter. Marshall Wace LLP boosted its stake in shares of Hovnanian Enterprises by 686.3% during the 4th quarter. Marshall Wace LLP now owns 42,460 shares of the construction company’s stock worth $4,142,000 after acquiring an additional 37,060 shares in the last quarter. Towle & Co. boosted its stake in shares of Hovnanian Enterprises by 51.2% during the 4th quarter. Towle & Co. now owns 99,402 shares of the construction company’s stock worth $9,696,000 after acquiring an additional 33,681 shares in the last quarter. Empowered Funds LLC boosted its stake in shares of Hovnanian Enterprises by 46.5% during the 1st quarter. Empowered Funds LLC now owns 73,146 shares of the construction company’s stock worth $8,113,000 after acquiring an additional 23,234 shares in the last quarter. Finally, State Street Corp boosted its stake in shares of Hovnanian Enterprises by 8.6% during the 4th quarter. State Street Corp now owns 228,613 shares of the construction company’s stock worth $22,299,000 after acquiring an additional 18,086 shares in the last quarter. 65.40% of the stock is owned by hedge funds and other institutional investors.

Hovnanian Enterprises Company Profile

Hovnanian Enterprises, Inc is a publicly traded homebuilding company primarily engaged in the acquisition, development and construction of residential properties. Headquartered in Red Bank, New Jersey, the company operates through a network of regional homebuilding divisions that design and deliver a range of housing solutions, including single-family detached homes, townhomes and condominiums. Hovnanian combines land development, architectural design and construction services with in-house mortgage and insurance offerings to provide a comprehensive homebuying experience.

The company markets its communities under several branded product lines tailored to different buyer segments and price points.